I believe the most likely course for inflation is to settle around its current level in 2005.

After going through a foggy stretch of road with potholes and sharp turns, the economy seems to be in a stretch of more open highway. While there can always be surprises around the next corner, I would add that my near-term forecast is for more of the same: GDP growth in the 3 to 4 percent range, continued strong business spending growth, steady employment gains along with a continuing decline in the unemployment rates and low inflation as measured by the Consumer Price Index in the range of 2 ½ to 3 percent.

I think that...if the deficit as a percent of GDP does not go down, I think we will - going into the 2008 forward period poorly positioned.

It looks like core inflation will continue to run in the 1.5 to 2 percent range.  That, in historical context, remains a low rate of inflation.

I think that we will see our GDP growth will once again be in the neighborhood of 3.5 to 4 percent, perhaps a little more modest than 2004, but still very healthy growth above our long-run potential growth rate.

The U.S. economy, as I indicated, is growing in 2004, the data says, slightly less than four percent. I’m predicting 3.5 to four percent. That's slightly above potential.

Looking forward, I expect real GDP to expand at a 3.5 to 4 percent rate through 2005.

We will add jobs again in 2005.  I think a number in the order of two million net new jobs in 2005 is in the realm of possibility.

GDP growth seems most likely to lie in the three and one half to four percent range next year, barring a large unforeseen economic shock.

Looking ahead, I expect real GDP growth to be in the neighborhood of 4 percent for 2005. Given this scenario, the Fed should continue moving monetary policy toward a neutral stance at a measured pace and thus keep inflationary pressures well-contained.